SKF Annual Report 2024: Major Decarbonization Developments and Future Growth Plans

SKF's Annual Report 2024: A Clear Focus on Sustainability and Growth

On March 7, 2025, AB SKF released its Annual and Sustainability Report 2024 on its website, marking an important moment for stakeholders interested in the company's environmental impact and strategic direction. This year’s report emphasizes SKF’s ongoing efforts in value creation for clients, shareholders, and broader stakeholders.

The document highlights significant operational transformations and progressive financial outcomes, illustrating the company’s commitment to sustainability alongside its growth initiatives. One of the major highlights of the report is SKF's drive towards significant emission reductions, aiming for a remarkable 95% decrease in scope one and two emissions relative to a 2019 baseline by the year 2030.

According to Rickard Gustafson, President and CEO of SKF, the company achieved a substantial 59% reduction in these emissions during 2024, far surpassing the expected 43% reduction set forth by the Science Based Targets initiative (SBTi). This momentum reflects SKF’s strategic decision-making focused on enhancing sustainability while also fostering robust business health.

The efforts towards decarbonization didn’t occur in isolation. Alongside cutting emissions, SKF has maximized its transition to renewable energy sources, with 72% of its electricity consumption coming from renewables in 2024, an increase from 64% in the previous year. This aligns with SKF's aspiration, as part of the Renewable Energy 100 (RE100) initiative, to operate solely on renewable energy by 2030.

Furthermore, the updated Remuneration Report included in the Annual Report aims to provide stakeholders with increased transparency around executive compensation, showcasing how leadership aligns with long-term corporate strategy and sustainability goals. The changes underscore SKF’s ethos of integrating accountability into their operational model.

The report does not only paint a picture of progress in sustainability but also highlights SKF’s structural changes, such as the initiation to transform its automotive division into a standalone business entity. This strategic pivot is designed to leverage new growth avenues as market demands evolve.

Gustafson stated, “The progress we made in 2024 is an essential achievement that demonstrates our commitment to our long-standing sustainability objectives. Without the hard work from employees across the globe, reaching these milestones would not have been possible.” This statement reflects the collaborative approach within the company to drive meaningful change.

SKF's Annual and Sustainability Report 2024 is now accessible for download on their investor website at investors.skf.com. This transparency not only benefits stakeholders but also sets a standard for corporate responsibility in environmental matters.

In conclusion, as SKF advances its sustainability agenda and aligns its business strategies with environmental goals, it provides a valuable roadmap for other companies aiming to integrate sustainability into their core operations. The strides made in decarbonization and energy sourcing come as both impressive achievements and a clear signal of SKF's intentions moving forward in the industry.